Royal Bank of CanadaTSX:RY +1.00%77 5-Year Yield-on-Cost % is 3.07 as of Jul. 11, 2026, which is 42% below its 10-year median of 5.29. GuruFocus rates TSX:RY with a GF Score™ of 77/100 and a GF Value™ of C$205.37 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,253 Banks companies, Royal Bank of Canada ranks worse than 64.96% on this metric.
Royal Bank of Canada's yield on cost for the quarter that ended in Apr. 2026 was 3.07.
The historical rank and industry rank for Royal Bank of Canada's 5-Year Yield-on-Cost % or its related term are showing as below:
TSX:RY'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.07 Med: 5.29 Max: 7.6
Current: 3.07
During the past 13 years, Royal Bank of Canada's highest Yield on Cost was 7.60. The lowest was 3.07. And the median was 5.29.
TSX:RY's 5-Year Yield-on-Cost % is ranked worse than 64.96% of 1253
companies
in the Banks industry
Industry Median: 3.89
vs TSX:RY: 3.07
Royal Bank of Canada (TSX:RY) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Royal Bank of Canada 5-Year Yield-on-Cost % Related Terms
TSX:RY vs JPM, BAC, WFC: 5-Year Yield-on-Cost % Comparison
For the Banks - Diversified subindustry, Royal Bank of Canada's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Royal Bank of Canada 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Royal Bank of Canada's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Royal Bank of Canada's 5-Year Yield-on-Cost % falls into.
Royal Bank of Canada 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Royal Bank of Canada (TSX:RY) has a 5-Year Yield-on-Cost % of 3.07 as of Jul. 11, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Royal Bank of Canada and its competitors. This is 42% below median its historical median of 5.29. Over the past decade, Royal Bank of Canada's 5-Year Yield-on-Cost % has ranged from 3.07 to 7.60. According to the industry distribution chart, Royal Bank of Canada ranks #814 out of 1253 companies in the Banks industry, placing it in the top 65%.
Is Royal Bank of Canada's 5-Year Yield-on-Cost % too high?
Royal Bank of Canada's current 5-Year Yield-on-Cost % of 3.07 is 42% below median its 10-year median of 5.29. Over the past 10 years, this metric has ranged from a low of 3.07 to a high of 7.60. The Banks industry median 5-Year Yield-on-Cost % is 3.89. Royal Bank of Canada's value of 3.07 is 21.1% below this industry median. Based on the distribution chart, Royal Bank of Canada ranks #814 out of 1253 companies in the Banks industry, which is below the industry midpoint. Overall, Royal Bank of Canada has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royal Bank of Canada's 5-Year Yield-on-Cost % compare to JPM and BAC?
According to the Banks industry distribution chart, Royal Bank of Canada ranks #814 out of 1253 companies for 5-Year Yield-on-Cost %. This places Royal Bank of Canada in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.89. Royal Bank of Canada's value of 3.07 is 21.1% below this benchmark. Historically, Royal Bank of Canada's own 5-Year Yield-on-Cost % has ranged from 3.07 to 7.60 over the past decade. While the company's 10-year median is 5.29 vs. the industry median of 3.89, Royal Bank of Canada has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.89, based on 1,253 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Bank of Canada's current 5-Year Yield-on-Cost % of 3.07 is 21.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Royal Bank of Canada and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Bank of Canada's current 5-Year Yield-on-Cost % is 3.07, which is 42% below median its own 10-year median of 5.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Bank of Canada stock overvalued right now?
Based on GuruFocus' analysis, Royal Bank of Canada (TSX:RY) is currently considered Significantly Overvalued. The stock's GF Value™ is C$205.37, compared to a current price of C$298.81 — trading 45.5% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.07, which is 42% below median its 10-year median of 5.29 and 21.1% below the Banks industry median of 3.89. Royal Bank of Canada's overall GF Score™ is 77/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Royal Bank of Canada (TSX:RY), the current 5-Year Yield-on-Cost % is 3.07 as of Jul. 11, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Royal Bank of Canada (TSX:RY) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Bank of Canada stock appears to be overvalued.
The current stock price of C$298.81 is trading 45.5% above its estimated GF Value™ of C$205.37.
GuruFocus considers Royal Bank of Canada to be Significantly Overvalued.
Key valuation signals for TSX:RY:
5-Year Yield-on-Cost %: 3.07 (42% below median its 10-year median of 5.29)
GF Value™: C$205.37 vs. price of C$298.81 (45.5% above fair value)
Industry Position: 21.1% below the Banks median (#814 of 1253)
No single metric tells the full story. See the TSX:RY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royal Bank of Canada is one of the two largest banks in Canada, with around CAD 2.4 trillion in assets at the end of April 2026. It is a diversified financial services company, offering personal and commercial banking, wealth management, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada and has dominant market shares. RBC also has wealth and capital market businesses in the US, UK, and other countries. RBC is a top 15 investment bank globally.
77GF Score
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